Drugstore.com plans a makeover for Beauty.com using Web 2.0
Drugstore.com wants to reach $500 million in web sales by 2008 and it’s counting on a redesign of Beauty.com and stronger prescription drug and over-the-counter sales to reach that goal.
In 2007, Beauty.com, which is linked to Drugstore.com, will be redesigned to incorporate more Web 2.0 applications, including more personalization and product recommendation tools. “Our objective is to reinforce Beauty.com’s heritage and provide the best online prestige shopping experience,” Drugstore.com CEO Dawn Lepore told analysts on the company’s recent year-end earnings call. “The new site will be focused on using content to support products sales and leverage Web 2.0 tools and technologies.”
2006 sales at Drugstore.com Inc. reached $415.8 million, up 4% from $399.4 million in 2005, the company reports. The company reported a net loss of $13 million, a 37% improvement from a loss of $20.9 million in 2005. In the 4th quarter, revenue reached $108.6 million, up 2% from $106.4 million a year earlier. Q4 net loss was $2.9 million vs. $4.5 million a year earlier.
In 2007, Drugstore.com, No. 32 in the Internet Retailer Top 500 Guide, is expecting sales to range from $440 million to $460 million and a net loss of $7 million to $11 million. “A key to our 2007 growth plan will be a planned set of investments, which include web store improvements such as new features and functionality for Beauty.com, drop ship integration, and internal search functionality enhancements,” Drugstore.com CFO Bob Barton told analysts.
Back...
